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Labor market regulation can have harmful unintended consequences. In many markets, especially for public sector workers, pay is regulated to be the same for individuals across heterogeneous geographical labor markets. We would predict that this will mean labor supply problems and potential falls...
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Using US Census data for 1990-2000, we estimate effects of NAFTA on US wages. We look for effects of the agreement by industry and by geography, measuring each industry's vulnerability to Mexican imports, and each locality's dependance on vulnerable industries. We find evidence of both effects,...
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Many countries have policies aimed at creating jobs in depressed areas with high unemployment rates. In standard spatial equilibrium models with perfectly competitive labor and land markets, local job creation efforts are distortionary. We develop a stylized model of frictional local labor...
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local employment and payroll in nontradable industries and in total, while having no effect on employment in tradable …
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's Longitudinal Business Database, we document that firms redistribute the employment impacts of local demand shocks across regions … sharp drop in consumer demand, leading to large employment losses in the non-tradable sector. Consistent with firms …-level employment with respect to house prices in other counties in which the firm has establishments. At the same time, establishments …
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By how much does an extension of unemployment benefits affect macroeconomic outcomes such as unemployment? Answering this question is challenging because U.S. law extends benefits for states experiencing high unemployment. We use data revisions to decompose the variation in the duration of...
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